The US government's ballooning interest payments are eating a hole in its budget, they said.
"We are headed toward record spending levels, record deficit levels, record debt levels, record interest payments — the list goes and on," Maya MacGuineas, the president of the Committee for a Responsible Federal Budget, told Fox Business this week.
While the US isn't at imminent risk of that kind of chaos, bond markets could "snap back" if the government's interest payments soar to $1 trillion in 2026 as expected, Swagel said.
AdvertisementHowever, she noted that some experts on Wall Street were "incredibly worried" about the national debt and interest payments.
DoubleLine Capital CEO Jeffrey Gundlach has also sounded the alarm on debt payments.
Persons:
—, MacGuineas, Philip Swagel, Liz Truss, Swagel, bitcoin, Jim Rogers, George Soros, He's, Jeffrey Gundlach
Organizations:
Investors, Service, Federal Budget, Fox Business, Congressional, Office, Financial Times, Bank of, CBO, Wall, DoubleLine